Magnolia Bostad Half-year Report 2023

Report

Press release

Magnolia Bostad Half-year Report 2023

Our project margins are still under pressure as a result of high construction costs, inflation, more expensive financing and higher required returns, which is why we only started production on a few residential units in the last quarter. Our view is that there is a consensus in the industry that vigorous measures are needed to avoid several years of very low housing production.

A continuing extensive housing shortage risks inhibiting growth in society as well as threatening the green transition and, in the long term, creating a skills shortage in the industry. We still see the future in positive terms and are continuing to work on our current and future projects. There are many excellent projects and neighbourhoods being developed, we have over 9,000 residential units in production and our building rights portfolio is just over 17,000 rights. In terms of our long-term sustainable growth, we see it as a positive sign that Areim has signed an agreement to buy all the shares in Magnolia Bostad's ownership company. With Areim as the sole owner, we have a financially strong, stable owner that gives us the opportunity to meet the market's current challenges and take advantage of opportunities that arise.

1 January-30 June 2023

  • Net sales amounted to SEK 158 m (188). The operating loss was SEK 286 m (-85), of which SEK -25 m (32) applies to changes in the value of investment properties.
  • The loss before tax for the period was SEK 419 m (-161) and the loss after tax was SEK 422 m (-148).
  • Earnings per share after deductions for minority shares was SEK -10.22 (-3.38).

1 April-30 June 2023

  • Net sales amounted to SEK 101 m (97).
  • The operating loss was SEK 179 m (-62), of which SEK -21 m (14) refers to changes in the value of investment properties.
  • The loss before tax for the period was SEK 245 m (-105) and the loss after tax was SEK 246 m (-109).
  • Earnings per share after deductions for minority shares was SEK -6.03 (-2.59).

Significant events 1 April-30 June 2023

  • Started production of 57 residential units in Göteborg.
  • Converted shareholder loan, including accrued interest, of SEK 327 m from HAM Nordic AB to an unconditional shareholder contribution.
  • Areim signed an agreement to buy all the shares in Magnolia Bostad AB's owner company HAM Nordic AB. The agreement means that Areim has sole control of the company, with a focus going forward on creating the best possible conditions for long-term sustainable growth. Magnolia Bostad was previously 50% owned by Areim, 35.5% by Holmström Fastigheter and 14.5% by Holmströmgruppen.

Significant events after the end of the quarter

  • No significant events occurred after the end of the quarter.

For more information, please contact:
Johan Tengelin, CEO
[email protected]
 
Fredrik Westin, Deputy CEO & CFO
[email protected]
+46 72 720 00 06

This information is information that Magnolia Bostad is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-07-07 07:45 CEST.

About Magnolia Bostad
Magnolia Bostad AB, CIN 556797–7078, is a leading urban developer that develops new residential properties primarily rental apartments but also tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. The company´s bonds are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.se

Top link